The only thing truly predictable about the stock market’s current volatility is its unpredictability. The fast-moving shifts in prices have prompted spurts of both selling and buying – you can’t have one without the other – that have left some stocks oversold, and trading much lower than they should.
Wall Street’s analysts make all sorts of stocks picks, and they don’t shy away from tapping oversold stocks as positive choices. We’ve used TipRanks database to pull up the latest scoop on two such stocks. Both Strong Buys with substantial upside potential, according to the analyst community. Let’s get a look at the details.
Post Holdings (POST)
Let’s start in kitchen pantry, where most of us have some of Post Holdings’ products. This company owns a broad portfolio of consumer staple brands, including its eponymously branded breakfast cereals and well-known names such as Weetabix and Bob Evans. Looking at the discount side, Post shares are down ~17% from January’s peak and now sit near 52-week low.
The company has felt the effects of changing market conditions in the past two years. A consumer move toward home cooking benefited the company during the worst of the corona crisis, and the early stages of price inflation last year were also reflected in rising revenues.
In the company’s last quarter, fiscal 1Q22 which ended on December 31, the headwinds started to dominate. Top line revenues came in at $1.64 billion. While this was down 3% from the previous quarter, it was in-line with expectations – and was up nearly 12% year-over-year. Earnings, however, told a different story. The company reported a diluted loss per common share of 25 cents – an unfortunate turnaround from the $1.21 profit in the year-ago quarter.
Looking at the silver lining, Stifel analyst Christopher Growe writes: “This performance was encouraging in the face of heavy inflation, the challenging pandemic-related labor issues, and robust pricing taking hold.”
On a note of interest for investors, earlier this month Post completed its spinoff of BellRing brands, a…